Acquires Québec City Portfolio & Sells Two Non-Core Prop. TORONTO, Oct. 01, 2021 (GLOBE NEWSWIRE) -- Canadian Apartment Properties Real Estate Investment Trust (“CAPREIT”) (TSX:CAR.UN) announced today that it has completed the acquisition of a portfolio of three apartment buildings located in Qubec City aggregating 260 residential suites. CAPREIT paid $72.8 million for the portfolio, funded by CAPREIT’s Acquisition and Operating Facility. Residential occupancy in the portfolio was 99.6% at closing.
Constructed between 2012 and 2015, these modern high-quality properties are located in a small cluster in Qubec City overlooking the St. Lawrence River close to Old Qubec and other prominent tourist and shopping destinations. Including 24 one-bedroom, 115 two-bedroom and 121 three-bedroom apartments, average suite size across the portfolio is an extensive 1,260 square feet. The properties are fully sprinklered, and all appliances in the suites are resident-owned, reducing future capital investments on resident turnover. All suites are also sub-metered where residents pay their own utility costs, including water consumption.
CAPREIT also announced that on September 29th, 2021 it has sold 124 Broadway Avenue in mid-town Toronto containing 86 suites. CAPREIT acquired the operating lease for the property in 2004 and in December 2019 completed the early buyout of the operating lease to own 100% of the building. The property is being sold to a well-respected developer. CAPREIT is capitalizing on the development potential of the property with a sale price of $52.0 million. CAPREIT will provide the purchaser with a vendor takeback mortgage (“VTB”) for 90% of the purchase price with an annual interest rate of 2.33% due in 24 months from closing, with an option to extend the VTB for an additional year at an interest rate of 4.0%.
In addition, today CAPREIT has sold its one-third managing interest in King’s Club located at 1100 King Street West in downtown Toronto for approximately $90.9 million to Woodbourne, a Canadian developer, operator and investor in residential rental properties, including apartments, seniors housing and student housing. CAPREIT will provide a VTB to the purchaser to finance 75% of the purchase price at an annual interest rate of 3.0% due in 36 months from closing.
“We continue to review and assess our entire property portfolio, identifying and acting on assets where we believe we have maximized value and applying the proceeds from such property sales toward more accretive growth opportunities for our Unitholders,” commented Mark Kenney, President and CEO.
https://www.globenewswire.com/news-release/2021/10/01/2307391/0/en/CAPREIT-Acquires-Qu%C3%A9bec-City-Portfolio-Sells-Two-Non-Core-Properties.html